FICCI welcomes India-US understanding on rejuvenating nuclear commerce

  |    February 17th, 2015   |   124

New Delhi (N4C Desk)-FICCI welcomes  the understanding reached between India and the US on issues related to Civil Nuclear Liability, during the recent visit of President Obama.  This  will usher in a new beginning to operationalize nuclear commerce between India and other nations which had been stymied for some time due to ambiguity on the issue of Civil Liability, said Dr. Jyotsna Suri, President, FICCI.

Dr. Suri observed that while industry welcomes the clarifications put forward by the MEA, with respect to certain issues that were hindering the future of nuclear commerce due to existing nuclear liability framework, there still remain some unanswered questions on which industry would require to have a comfort level.

The contentious issues that still remain are uncertainties arising out of interpretation of Section 17, Section 46 of CLNDA-2010 and Rule 24 of Nuclear Damage Rules 2011 risk hampering India’s robust civil nuclear energy program.

Dr. Suri said that industry is glad to note that the risk sharing mechanism between the operator and supplier has been highlighted. However, greater clarity is required vis-à-vis the definition of supplier in the context of domestic entities which are engaged in contract manufacturing for NPCIL, as per their design and specification, especially for the domestic nuclear program. A greater detailing would instill confidence among the industry and help break the current nuclear equipment supply logjam. Industry looks forward to finalization of terms & conditions of India Nuclear Insurance Fund.

The FICCI President  added that industry would also like to understand the tenability of the clarifications provided by MEA FAQs as well as the future contracts between NPCIL and industry in a court of law in the event of a nuclear accident. The nuclear manufacturing industry would also require a clarification from NPCIL and DAE that this risk would be adequately covered through the Nuclear Insurance Fund.